Funding Circle Holdings Plc · LSE:FCH
Funding Circle — H1 2026 Earnings Presentation
35 slides from Funding Circle's earnings presentation, June 2026
Slide 1: Half Year 2026 results
Half Year 2026 results Chameleon Live
Slide 2: Another standout six months
Another H1 26 revenue and profit growth, building on 2025 standout Strong customer demand in a large, underserved market six months Focused strategy and product innovation Significant opportunity ahead Proprietary technology & data deepens our competitive moat Capital light platform built for furthe
Slide 3: Record revenue performance in H1 26 with continued growth momentum
Record revenue performance in H1 26 with continued growth momentum £138m £1.7bn Revenue Credit extended 50% YoY 52% YoY £24m £3.3bn Profit before tax Assets under Management 4x growth 15% YoY ANNA Cake Couture 3
Slide 4: Multi-product strategy driving growth and loyalty
Multi-product strategy driving growth and loyalty The trusted financial partner for UK SMEs Increased frequency of customer 20 secs transactions 38 seconds in 2025 30 minutes in 2021 Deep engagement with existing 31% customers with more than one product 0% in H1 2021 Term Loans FlexiPay line of cred
Slide 5: Financial Performance
Financial Performance
Slide 6: Delivering against our plan: leaner, simpler and profitable
Delivering against our plan: leaner, simpler and profitable Credit extended Revenue PBT AuM £m £m £m £m 52% vs H1 25 50% 302% 15% 6
Slide 7: Strong growth trajectory and margin expansion
Strong growth trajectory and margin expansion Group P&L Margin expansion to 17% £m H1 25 H1 26 Change Revenue 92.3 138.2 50% Operating expenses 77.9 98.9 27% Opex as % Expected credit losses ECL 8.4 15.2 81% revenue Profit before tax 6.0 24.1 302% PBT margin PBT margins 6.5% 17.4% Assets u
Slide 8: Term Loans: growth from expanded product suite and strong Q1 demand
Term Loans: growth from expanded product suite and strong Q1 demand delivering operating leverage £m Credit extended Assets under Management Revenue PBT Originations) Margins 43% 11% 43% 16.7% 21.3% 26.4% 8
Slide 9: FlexiPay & Credit Card: continued momentum from repeat usage and new customers
FlexiPay & Credit Card: continued momentum from repeat usage and new customer acquisition £m Credit extended Assets under Revenue ECL PBT Transactions) Management 71% 78% 83% 81% 9
Slide 10: FlexiPay & Credit Card: strong repeat usage and growth in all cohorts
FlexiPay & Credit Card: strong repeat usage Recurring revenue and growth in all cohorts dynamics 90% FlexiPay & Credit Card AuM by half year cohort £m Revenue from prior cohorts Strong growth 71% 81 Transactions growth 48% Active customers 10
Slide 11: Scalable platform: revenue up 50%, costs up 27%
Scalable platform: revenue up 50%, costs up 27% from variable costs Marketing £m Other operating expenses £m SBP Other 1 Marketing Salaries % revenue 30% 31% 29% % revenue 54% 48% 43% 1 Data and processing, IT, depreciation & amortisation, and other costs 11
Slide 12: FlexiPay & Credit Card: expected credit loss charge growing in line with book
FlexiPay & Credit Card: expected credit loss charge growing in line with book growth, loss rates stable Expected credit loss charge FlexiPay & Credit Card credit performance (forward looking)1 (backward looking) Net annualised loss rate Last 12 months £m Jun 25 Dec 25 Jun 26 AuM at period end 169 20
Slide 13: Capital light platform: right funding for right products
Capital light platform: right funding for right products Assets under Management £m 91% off-balance sheet funding Term Loans £3.3bn 15% vs H1 25 9% balance sheet funding FlexiPay & Credit Card 13
Slide 14: Capital light platform: built for scale
Capital light platform: built for scale Term Loans: FlexiPay & Credit Card: Strong, diversified funding pipeline Efficient capital usage £2.4bn £320m Future funding in place facility + equity of £71m Capital cycles quickly (c.34m) 14
Slide 15: Term Loans highly cash generative and FlexiPay now free cash flow breakeven
Term Loans highly cash generative and FlexiPay now free cash flow breakeven Unrestricted cash deployed in the period £m Free cash flow¹ Invest Distribute 1 Free cash flow represents the cash flows of the trading businesses before investment (funding of loans and lines of credit) 15
Slide 16: Capital allocation framework: further £25m buyback announced
Capital allocation framework: further £25m buyback announced Deployable cash Capital allocation framework £88m and growing, up from £76m at Dec ‘25 Deliver Current cash generation delivers £m MTP growth strategy our medium-term plan Investment, e.g. R&D for new Invest products and co-investment in t
Slide 17: Outlook: upgrade to FY26 guidance and trending toward upper end of FY29 revenue guidance
Outlook: upgrade to FY26 guidance and trending toward upper end of FY29 revenue guidance Growth Profitability Revenue > £255m PBT £40m FY26 (previously c.£235m) (previously at least £35m) Medium term FY29 Revenue of c.£300m-£350m PBT margins of low to mid-20s % 17
Slide 18: Looking ahead
Looking ahead
Slide 19: Backing small businesses and fuelling UK economic growth
Backing small businesses and fuelling UK economic growth £18bn 117,000 credit extended jobs supported to SMEs since 2010 in 2025 135,000 £7.9bn small businesses funded GDP contribution since 2010 in 2025 18,000 SMEs supported across the UK in H1 19
Slide 20: Well-positioned to grow in large, addressable markets
Well-positioned to grow in large, addressable markets More customers £80bn+ SME debt origination market More usage £1.3trn SME B2B payments More products and better customer experience £80bn+ SME card transactions More data and better decisions 20
Slide 21: Tech and data advantage deepens our competitive moat
Tech and data advantage deepens our competitive moat 16 years of proprietary data with 10 billion data points 6 min application time 75% instant decisions 3x better risk differentiation than bureau score 77 Customer NPS Continued product and feature innovation Constructive & Co.
Slide 22: AI is improving productivity and customer experience
AI is improving productivity and customer experience Team fluency >90% Circlers using Gen AI Operations productivity 6x Faster Data Subject Access Request processing 30% Speed to market Engineering improvement from productivity AI-native team Contributing to 20% improvement in revenue / person on
Slide 23: Trusted financial partner
Trusted Deep competitive advantage, large market and focused strategy that enables us to continue to win financial Attractive medium-term financial opportunity partner fuelling more SME success stories for SMEs Strong platform for longer-term growth beyond our current product set 23
Slide 24: Q&A
Q&A Lisa Jacobs Tony Nicol CEO CFO
Slide 25: Thank you.
Thank you. Business finance that backs you
Slide 26: Disclaimer
Disclaimer Information regarding forward-looking statements This Presentation includes forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties, many of which are beyond the Groupʼs control and all of which are based on the Groupʼs current belief
Slide 27: Appendices
Appendices
Slide 28: Our products
Our products Term Loan Marketplace FlexiPay line of credit Credit Card Loan for long term Marketplace network of Flexible line of credit for Credit card for everyday investment purposes to third-party finance paying bills, supplier invoices business spending support business growth or providers allo
Slide 29: Diversified borrower base
Diversified borrower base Industry as % of 2025 AuM Note: Based on Term Loans core commercial lending since June 2022, representative of borrower base Source: Business population estimates 2025 gov.uk 29
Slide 30: How our business model works
How our business model works Borrowers Investors Our multi-product offering combines Capital light funding model that is built long-term capital access with flexible tools for scale for everyday cash flow Term Loans 54% Funding Circle platform Institutional investors 91% Unsecured loans, typically w
Slide 31: How we make money
How we make money Business Unit Revenue stream Driver Typical yield Term Loans Transaction fees Credit extended c.7.5% 78% % of H1 26 Assets under revenue Servicing fees c.1.4% p.a. management FlexiPay & Credit extended and Drawdown fees & Credit Card assets under Variable credit card interest manag
Slide 32: Segmental AEBITDA
Segmental AEBITDA Term Loans FlexiPay & Credit Card Group £m H1 25 H2 25 H1 26 H1 25 H2 25 H1 26 H1 25 H2 25 H1 26 Revenue 75.9 91.5 108.2 16.4 20.5 30.0 92.3 112.0 138.2 AEBITDA1 20.1 26.5 37.0 5.1 3.6 1.8 15.0 22.9 35.2 Profit / (loss) before tax 12.7 19.5 28.6 6.7 5.2 4.5 6.0 14.3 24.
Slide 33: Illustrative – FlexiPay & Credit Card unit economics
Illustrative – FlexiPay & Credit Card unit economics • Upfront customer acquisition CPA reducing over time) • Upfront expected credit losses • Stable repeat usage • Payback period 1218 months • Wider portfolio benefits with high engagement and marketing efficiencies 33
Slide 34: Our models deliver 3x better risk differentiation than the bureau score
Our models deliver 3x better risk differentiation than the bureau score Default rates (by deciles) Risk Band Bureau Funding Circle Delphi score) Gen 9 model) Highest Risk 23.4% 30.8% • Compared to the UK bureau delphi scores, our 1 Gen 9 model achieves 3 times greater separation between lowest and
Slide 35: Annualised net returns above cost of capital
Annualised net returns above cost of capital Annualised net returns by cohort • Annualised net returns in line with investor expectations • Strong competition driving lower investor return hurdles in H1 26 Two-year weighted average swap rate Note: Core term loans only to show track record of investo
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